Second Official Sentenced in Scheme to Funnel Money from Organization for Personal Use
NEW YORK, NY (May 20, 2010) - Attorney General Andrew M. Cuomo today announced the sentencing of the former CEO of a not-for-profit corporation operating in Orange and Sullivan counties following his guilty plea for stealing hundreds of thousands of dollars.
According to court papers, from 2002 until 2005, Joseph O’Connell, 63, of Middletown, New York, stole funds from Family Empowerment Council, Inc. (FEC), a provider of services to people with developmental disabilities and special needs, many of them children. Through his position as CEO, O’Connell directed 176 FEC checks to his family-owned printing business, Accu-Typeset and Design. The checks grossly overpaid for the work provided or paid for work that was never done. The Attorney General’s investigation shows that FEC funds deposited into the Accu-Typeset and Design account were used to fund vacations and extensive home and internet shopping.
“Mr. O’Connell used his senior position at a not-for-profit to orchestrate a scheme to funnel hundreds of thousands of dollars to fund lavish vacations and shopping sprees for himself and his family,” said Attorney General Cuomo. “The silver lining to this sad saga is that the organization will continue to provide vital services to families in Orange and Sullivan Counties.”
O’Connell was sentenced today to four weekends in jail, five years probation, and $350,000 restitution to FEC after pleading guilty to grand larceny in the second degree (class C felony) on January 15, 2010. At that time, he also pleaded guilty to a felony charge for failing to file New York personal income tax returns from 2003 to 2005 and was sentenced to a concurrent five years probation on that charge. The New York State Department of Taxation and Finance entered into a separate agreement with O’Connell for payment of the back taxes.
On May 5th, Frank R. Kincade, Jr, 47, FEC’s former Chief Financial Officer was sentenced to 6 months in jail, five years probation, and $128,000 in restitution to FEC after pleading guilty to grand larceny in the third degree (class D felony) on February 18, 2010. According to court papers, from 2002 until 2006, Kincade, stole funds by using his position as CFO to prepare and draw 55 FEC checks payable to his own personal expenses. This included payments to various mortgages, credit card accounts, and property owners’ associations.
Attorney General Cuomo thanked the current administration of FEC, for bringing this matter to his office’s attention following FEC’s own internal audit, and for its cooperation. He also thanks the New York State Department of Taxation and Finance for its assistance in the investigation.
The case was handled by Special Assistant Attorney General Laura J. Meehan of the Medicaid Fraud Control Unit’s Special Project Unit under the supervision of its Director, Jay Speers, with the assistance of Associate Special Auditor Investigator Karin Flynn and Special Investigators Lisa McDonald and Kenneth Deis.
Second Official Sentenced in Scheme to Funnel Money from Organization for Personal Use
According to court papers, from 2002 until 2005, Joseph O’Connell, 63, of Middletown, New York, stole funds from Family Empowerment Council, Inc. (FEC), a provider of services to people with developmental disabilities and special needs, many of them children. Through his position as CEO, O’Connell directed 176 FEC checks to his family-owned printing business, Accu-Typeset and Design. The checks grossly overpaid for the work provided or paid for work that was never done. The Attorney General’s investigation shows that FEC funds deposited into the Accu-Typeset and Design account were used to fund vacations and extensive home and internet shopping.
“Mr. O’Connell used his senior position at a not-for-profit to orchestrate a scheme to funnel hundreds of thousands of dollars to fund lavish vacations and shopping sprees for himself and his family,” said Attorney General Cuomo. “The silver lining to this sad saga is that the organization will continue to provide vital services to families in Orange and Sullivan Counties.”
O’Connell was sentenced today to four weekends in jail, five years probation, and $350,000 restitution to FEC after pleading guilty to grand larceny in the second degree (class C felony) on January 15, 2010. At that time, he also pleaded guilty to a felony charge for failing to file New York personal income tax returns from 2003 to 2005 and was sentenced to a concurrent five years probation on that charge. The New York State Department of Taxation and Finance entered into a separate agreement with O’Connell for payment of the back taxes.
On May 5th, Frank R. Kincade, Jr, 47, FEC’s former Chief Financial Officer was sentenced to 6 months in jail, five years probation, and $128,000 in restitution to FEC after pleading guilty to grand larceny in the third degree (class D felony) on February 18, 2010. According to court papers, from 2002 until 2006, Kincade, stole funds by using his position as CFO to prepare and draw 55 FEC checks payable to his own personal expenses. This included payments to various mortgages, credit card accounts, and property owners’ associations.
Attorney General Cuomo thanked the current administration of FEC, for bringing this matter to his office’s attention following FEC’s own internal audit, and for its cooperation. He also thanks the New York State Department of Taxation and Finance for its assistance in the investigation.
The case was handled by Special Assistant Attorney General Laura J. Meehan of the Medicaid Fraud Control Unit’s Special Project Unit under the supervision of its Director, Jay Speers, with the assistance of Associate Special Auditor Investigator Karin Flynn and Special Investigators Lisa McDonald and Kenneth Deis.
Second Official Sentenced in Scheme to Funnel Money from Organization for Personal Use
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